UPDATE - 1/14/2019

On January 11, 2019, the Court granted all relief requested in the Receiver's Final Report, Final Distribution Request, and Motion to Wind-Up Receivership Estate. As a result, the Receiver will make a final distribution of $580,000 (equal to 1.14% of total approved claims) to aggrieved investors in the coming weeks. This will be the last and final distribution made by the Receiver in this case. The Receiver anticipates final distribution checks will be mailed within the next thirty (30) days.

UPDATE - 9/18/18

We have just learned that we have a $0 balance with the IRS. We will be moving in the near future to close this receivership and make the final distribution.

UPDATE - 2/20/18

On December 25, 2017, the Receiver received notice from the IRS that all penalties associated with the second of the three pending tax appeals will be abated (removed) in full. This decision will save the receivership estate an additional $69,618. At this point in time, there is now only one appeal pending. Once this final appeal is resolved, the Receiver will begin the process of closing the estate. The Receiver currently is unaware of when the final pending appeal will be resolved. However, the Receiver is hopeful that it will be resolved favorably in the coming weeks.

UPDATE - 11/13/17

On Friday, November 10, 2017, the Receiver received notice from the IRS that all penalties associated with one of the three pending tax appeals will be abated (removed) in full. This decision will save the receivership estate in excess of $70,000. There are still two appeals pending. The Receiver currently is unaware of when the pending appeals will be resolved. However, the Receiver is hopeful they will be resolved favorably in the coming weeks.

The
Receiver's frustration with the IRS and the continued inability to
determine when the appeal of penalties levied by the IRS will conclude
lead to this filing. The Court has reviewed the report and the request
by the Receiver to fund a third distribution. The Receiver has been
hesitant to incur the cost of a third distribution, hoping to conclude
the issues with the IRS and make one final distribution of all funds.
However, given the continued uncertainty, a third distribution will be
made in the coming weeks and a final distribution once the IRS issues
are finally resolved.

J. DAVID FINANCIAL QUARTERLY REPORT

The
J. David Financial Quarterly Report for the Reporting Period 8/01/2016
to 10/31/2016 can be viewed at this link.

UPDATE - 6/10/16

UPDATE - 4/14/16

In January the Receiver
provided an update on matters remaining before this proceeding can be
closed. As stated, the only remaining matters are pending before the
IRS. To the dismay of the Receiver, there remain 3 returns that are
still being discussed with the IRS. The Receiver has asked the IRS to
move promptly to resolve these issues but can do little more to make the
government act.

The Receiver will post when these matters have
been resolved and will then immediately move to close this estate and
make the final distribution.

UPDATE -
2/5/16

The Receiver is beginning to receive calls and emails
with regard to the tax treatment of investor claims and distributions.
The Receiver will not be sending out any tax related forms or providing
any tax related advice as each investor's situation is different.
Please contact your tax advisor for how to handle this aspect of your
return.

UPDATE - 1/20/16

The matters mentioned
in the last update have been resolved with the exception of matters
before the IRS. The final loan has paid as agreed and the Receiver has
reached agreement on the terms to settle the open litigation. These
terms are in the process of being documented and presented to the court
for approval. The Receiver is getting closer to having all matters
resolved and is down to the one issue over which he has the least
control. Further updates will be provided as the IRS issues are
resolved.

UPDATE - 11/9/15

The open matters outlined in the July update remain open. The receiver
has been told that the one loan that remains to be paid will be paid by
December 1, 2015. There is one litigation matter that remains open and
the parties are engaged in negotiations to resolve the dispute. The
Receiver's accountants have made substantial progress with the IRS. By
the end of the year the Receiver should be able to predict the closing
of the estate and the timing of the final distribution. The Receiver is
hopeful that the final distribution will be in the first quarter of
2016.

UPDATE - 7/21/15

There
are a number of matters that need to be resolved before we can close
this estate. We have several remaining issues open with the IRS. We
have litigation against people who we believe were unfairly paid more
than they should have been. We have one loan to be paid from the
disposition of real estate. These remaining issues are complicated and
do not allow the Receiver to predict when the matter will be finally
closed. All of these matters are in play to increase the distribution
to investors. If we have anything of importance to report we will do
it on this website by way of update. If you check back and find that
nothing has changed, our lack of an update means there is nothing new to
report. We thank you for your patience.

UPDATE - 3/30/15 - SECOND INTERIM DISTRIBUTION
CHECKS

As indicated in the update of March 4, 2015, the Claims
Team and Accountants for the Receiver have completed the necessary
arrangements to accomplish the Second Interim Distribution. Checks have
been mailed today and should be cashed promptly.

UPDATE - 3/4/15

On March 2, 2015, the
Court approved the Receiver's motion to distribute an additional
$10,000,000 to the approved claimants in this proceeding. See Order Granting Motion to Approve Second Interim
Distribution. The Receiver and his staff will begin immediately to
make arrangements for the disbursement. Funds needed for the
disbursement are not available until mid-March 2015 when certain
certificates of deposit mature. Claimants can expect their second
checks in April 2015.

UPDATE - 2/4/15

UPDATE - 1/8/15

The Receiver is in the process of planning
a meeting with his accountant advisors to determine the status of all
final tax returns and the possibility of a second distribution.
Schedules indicate that this meeting will take place near the end of
January. At this time, it appears that several remaining tasks to be
completed may hinder the closing of the estate as planned in the first
quarter of this year. To avoid more delay in returning funds to the
investor victims of Select Asset, the Receiver intends to gather better
information on the timing of the liquidation of the two remaining
financial assets, the final tax returns and one remaining lawsuit that
may be filed. The Receiver would like the investors to know that if it
appears that these open issues will not be resolved in the next few
months, the discussion with his advisors will center on a possible
significant distribution of the cash on hand leaving sufficient funds to
complete the liquidation of the remaining assets, the final distribution
and costs associated with closing the estate. The Receiver expects to
provide his Tenth Interim Report on these matters in the first week of
February.

UPDATE - 5/27/14

The receivership is in its final stages.
Several issues remain to be resolved. First, the Receiver is required
to develop and file certain tax returns for the estate entities and the
accounting firm that has worked with the Receiver has been engaged to
complete this work. The Receiver and his accountants expect that these
returns will be filed by October 15, 2014. Second, there remain 5
claims against the estate. The Receiver's claims team has reached
agreement with one of the claimants and his claim will be filed for
approval by the Court. The remaining four claims are in dispute. Some
information has been obtained from these claimants and more has been
requested. This information will be evaluated promptly upon receipt so
that these four claims can either be approved or denied and the claims
process terminated. Third, there are three assets that remain to be
liquidated, including two pieces of real estate and one loan. The real
estate is listed and evaluated periodically to determine if a listing
price adjustment will lead to a sale. The Receiver desires to sell the
real estate for the highest possible price, but is mindful as well of
the market and the need to bring this matter to a close. The loan that
remains will mature in March 2015 and as it is currently being paid as
agreed and bears an attractive rate of interest (and the Receiver's
efforts to sell the loan have not resulted in a sale) the Receiver
intends to collect the loan at maturity. All indications are that the
loan will be paid in full at maturity. Finally, due to the expense and
because the Court has only authorized one interim distribution and a
final distribution, the Receiver does not intend to make a second
interim distribution. Assuming the remaining assets are sold timely,
the final distribution and motion to close this matter will not be made
until at least April 2015.

UPDATE - 2/20/14

COURT SETS BAR DATE of MAY 1, 2014 FOR ALL
CLAIMS

On January 21, 2014, the Court entered an order setting a bar date
for all claims to be filed in this proceeding. All claims must be filed
with the Receiver no later than May 1, 2014. All claims filed after
that time will be denied for lack of timely presentation for
consideration in this proceeding. A copy of the Court's order can be
viewed at this link.

UPDATE - 11/5/2013 - INTERIM DISTRIBUTION

The last of the interim distribution checks were mailed today. They
are being sent by first class mail. You should receive your check and a
cover letter for each claim that has been approved. Many of you will
receive more than one envelope and check. All of these checks should
arrive within a few days. As well, the Receiver's First Unopposed
Motion to Modify Claims has been filed and the modified claims approved.
A copy of the motion and order are at this link. Checks for these
recently approved claims are being prepared and will be released
promptly.

UPDATE - 10/24/13

On October 22, 2013, the Court approved the Receiver's Fourth Motion
to Approve Claims. See attached Motion and Order. With this order, there are three remaining
claims to be reviewed and approved and about 47 claims that have been
previously approved but that need to be adjusted due to the Court's
approval of the collapse of all of the Salinas related entities into a
common fund. Despite those remaining tasks associated with the claims,
the checks for the approved interim distribution are in process and we
will begin to release them by the middle of next week. IF YOU HAVE HAD
A CHANGE OF ADDRESS SINCE YOU FILED YOUR CLAIM, PLEASE ADVISE US
THROUGH THE EMAIL ON THIS WEBSITE.

UPDATE - 10/15/2013 - INTERIM DISTRIBUTION

As indicated in
the last post, the Receiver and his claims team are working on both
adjusting some claims against the two investment funds that were
affected by the Court's ruling to collapse the Salinas entities into a
common fund and to get additional claims approved that have not yet been
addressed. The speed at which the adjustment of the fund claims will
happen is unknown. Accordingly, the Receiver intends to take the new
claims to be approved and those for which an adjustment has been agreed
and submit them to the Court next week for approval to increase the
number of claims that can be paid from the interim distribution. As
soon as the Court has approved this next round of claims, the Receiver
is prepared to begin the process of paying the interim distribution to
all approved claims. If all goes well, checks should issue by late next
week or early the following week.

Update - 10/1/2013 - Motion to Approve Distribution Plan
Approved

On September 27, 2013, the Court signed an Order approving the Receiver's Motion to Approve
Distribution Plan (the "Motion"). In the Motion, the Receiver asked
the Court to collapse all of the Salinas related entities into a single
common fund. As a result of the aggregation of entities, certain claims
for investments in Fund I and Prime Index need to be readjusted. The
Receiver and his team are working diligently to readjust these claims.
Once all claims have been readjusted, the Receiver will begin the
interim distribution process. Thank you for your patience.

UPDATE - 9/17/13

UPDATE - 9/6/13 - MOTION TO APPROVE DISTRIBUTION PLAN

As
stated in previous posts to this site, the Receiver has completed a
draft of his motion to the Court requesting approval of a distribution
plan in this proceeding. A copy of the motion can be reviewed at this
link. A copy of the plan
can be reviewed at this link.
There are several key issues to note.

The purpose of this posting
is to inform those who have a claim in this proceeding of the plans of
the Receiver and to consider any objection or concern that those with an
interest in this matter may have. Please submit any such objection or
comment via our email address under the Contact Us tab on this
page.

After much study, both factually and legally, the Receiver
has decided to ask the court to create one large pool of assets from
which all victims will share. His specific reasons are outlined in the
Motion. In summary, although the scheme developed by J David Financial
was different in form compared to Select Asset Fund I and Select Asset
Prime Index Fund, there was substantial co-mingling of funds from the
investors in all three schemes to warrant creating a single pool from
which to pay investors.

The Receiver has proposed an interim
distribution of $10,000,000, about half of what has been collected to
date. The Receiver's recommendation of this amount is conditioned on
the court creating a single pool for all investors.

The
Receiver's proposed interim distribution, if approved, will be paid to
those who have a Court Approved claim. For those who do not yet
have an approved claim, the Receiver and his claims team are working to
get those claims approved and as soon as they are approved, those
claimants will be paid the interim distribution as well.

The Receiver proposes to complete this interim distribution and to
have one final distribution when all of the remaining assets have been
liquidated.

The Receiver will delay filing the attached motion
for a period of 10 days from the date of this post to allow for comment.
It is the Receiver's intention to file the motion 10 days from today so
long as in his opinion no meritorious objection has been raised.

If the Motion is filed as planned, once approved, the Receiver will
immediately begin the process of determining the amounts to be
distributed and will issue checks accordingly.

UPDATE - 8/27/13

Please refer to the July 12, 2013 and the
August 20, 2013 updates below for the details of the Receiver's plan for
distributions. This is an update to those posts.

The Receiver is
moving the deadline to post a discussion draft of his plan for
distributions on this website by one week. Complications from the
accounting analysis and the need to prepare information for the plan and
the motion will take a small amount of additional time. The draft will
outline the plans for the distribution and the Receiver will also post
his proposed motion seeking Court approval. The motion will contain the
legal basis for the plan of the Receiver. These documents should be on
the website no later than September 6, 2013.

The Receiver intends
to leave the draft plan and the motion on the website through September
17, 2013. He will invite any comments to be sent in writing through the
Receiver's email address at the "Contact Us" tab on the
website.

If there is support for the plan or at least no serious
objection to the plan, the Receiver intends to ask the Court for its
approval. Once approval is obtained, the interim distribution can begin
promptly.

UPDATE - 8/20/13 - UPDATE ON DISTRIBUTIONS

Please refer to
the July 12, 2013 update below for the details of the Receiver's plan
for distributions. This is an update to that post.

The Receiver
expects to have a discussion draft of his plan for distributions on this
website by August 30, 2013. The draft will outline the plans for the
distribution and he will also post his proposed motion seeking Court
approval. The motion will contain the legal basis for the plan of the
Receiver.

The Receiver intends to leave the draft plan and the
motion on the website through September 11, 2013. He will invite any
comments to be sent in writing through the Receiver's email address at
the "Contact Us" tab on the website.

If there is support for the
plan or at least no serious objection to the plan, the Receiver intends
to ask the Court for its approval. Once approval is obtained, the
interim distribution can begin promptly.

UPDATE - 7/12/13

INTERIM DISTRIBUTION PLANS
- The Receiver has approached the Court regarding the possibility of
making an interim distribution of some of the money collected to date.
While the Receiver believes there is money that can be distributed, any
interim distribution is complicated by a number of factors. The Court
has indicated that it is willing to consider a Motion for an interim
distribution that will be determined on a full presentation of the
merits of the plan. The factors that influence such a plan include:

First, the claims process is not complete and thus not all
claims have been approved by the Court. There are approximately 284
claims in the proceeding and approximately 210 have been reviewed and
approved by the Court. The remaining claims are the more complicated
claims, poorly presented claims and potentially disputable claims. For
instance, some claimants simply attached hundreds of pages of
information to a blank claim form and submitted it to the Receiver for
his team to analyze. Such poorly presented claims slow down the claims
process and costs the receivership time and money to review. In
addition, such poorly presented claims make it very time consuming to
determine the total gross claimed amount, a number that must be
determined before any interim distribution or payment can be made.
Completion of the claims process will continue to take time and could
take as long as the end of the year to complete. Thus if an interim
distribution is to be made, only the Court approved claims would be paid
the interim distribution. The remaining claims would be paid only after
they have been approved by the Court. Regardless of this complication,
the Receiver believes that this staged payment of an interim
distribution is preferred to waiting out both the liquidation of all
assets and approval of all claims.

Second, not all assets have
been liquidated. The assets remaining include real estate, investments
without a ready market for sale, and possible litigation. The
liquidation of these assets could take a number of years. Again, this
factor weighs in favor of an interim distribution.

Third, the
Receiver has maintained the monies collected to date in three separate
accounts - one each for (a) J David Financial/Parkway Pawn/ Select Asset
Management LLC; (b) Select Asset Fund I LLC and; (c) Select Asset Prime
Index Fund LLC. The reason this has been done is that early on it
appeared to the Receiver that Mr. Salinas freely comingled money between
J David Financial, Parkway Pawn and Select Asset Management but not so
much between those entities and the two funds. In the next few weeks,
the receivership accountants and the Receiver will reach a final
determination on whether to keep these three accounts separate and thus
pay the investors in each of these separately, or whether to recommend
to the Court that all three groups be collapsed into one estate and the
investors paid from a common pool. Whatever decision the Receiver and
his accountants make will be presented to the Court for approval before
it is implemented.

The Receiver will propose that no more than
half of the money in any one account be distributed regardless of how
complete the claims process may be with respect to that particular
account. His reasons are (a) once the money is paid it would be time
consuming and expensive to get it back so it is only prudent to maintain
sufficient funds in case for some reason as the claims are finally
approved the numbers shift dramatically; (b) the tax returns for all of
these entities cannot be completed until just before the receivership is
closed and prudence again requires that funds be maintained in the event
there is any tax liability; and (c) there are on-going costs of
administration.

UPDATE - 6/18/13- BJORK SENTENCED

On June 14, 2013, in the
U.S. District Court for the Southern District of Texas, Brian Bjork was
ordered to prison in connection with an investment scam that defrauded
nearly a dozen investors of more than $1 million. Bjork was a
registered investment advisor formerly employed at J. David Financial
Group and later Select Asset Management, two businesses owned and
operated by deceased Friendswood financial advisor David Salinas. A
federal judge in Houston sentenced Bjork to a sentence of 52 months in
prison to be immediately followed by a term of three years of supervised
release. Bjork was further ordered to pay $1,131,491.74 in restitution
to his victims. For additional details, see the attached article.

The US Department of
Justice will administer a restitution process for victims of Mr. Bjork.
It is unlikely that their process will create much in the way of funds
to pay victims. It is unlikely that the process will even begin until
he is released from jail. The Receiver has NO CONTROL OR AUTHORITY
over the United States Department of Justice restitution process. As
this receivership is planned to be closed and completed well in advance
of the US Department of Justice restitution process, it is not expected
to have any impact on claims in this proceeding.

UPDATE - 01/28/13

THIS IS A MOTION TO APPROVE THE CLAIMS THAT
THE RECEIVER HAS REVIEWED THUS FAR. IF YOUR CLAIM IS NOT ON THE
LIST DO NOT BE CONCERNED. THE RECEIVER IS WORKING THROUGH THE CLAIMS
AND GETTING THEM APPROVED AS HE HAS A LARGE ENOUGH GROUP TO WARRANT A
MOTION. THIS IS JUST THE FIRST
MOTION. THERE WLL BE ADDITIONAL MOTIONS FILED. IF THE RECEIVER
HAS AN ISSUE WITH YOUR CLAIM YOU WILL BE CONTACTED.

UPDATE - 12/13/12

On December 12, 2012, the Receiver filed
Receiver's Sixth Interim Report with the Court. A
copy of the Report is also posted under the "Reports" tab on this page.

UPDATE - 9/10/12

On September 10, 2012, the Receiver filed Receiver's Fifth Interim Report with the
Court. A copy of the Report is also posted under the "Reports" tab on
this page.

UPDATE - 2/7/12

UPDATE - 11/04/11

On November 3, 2011, the Receiver filed Receiver's Second Interim Report
with the Court. A copy of the Report is also posted under the "Reports"
tab on the left side of this page.

Fund I and Prime Fund
Distributions

The Receiver has made a preliminary (not final)
determination to operate Select Asset Fund I LLC and Select Asset Prime
Index Fund LLC as separate from the other parties in the Receivership.
This preliminary determination is based on the interviews of relevant
individuals and an initial belief that money intended to be invested in
these funds were not co-mingled with or mis-directed to other
investments in this matter. This preliminary determination can change
depending on the outcome of the investigation. The Receiver needs to
complete the collection of all relevant bank statements for all of the
various entities and individuals involved and the analysis of these bank
statements to confirm his preliminary understanding. During this
process all distributions from these funds will be suspended until a
final determination is made.

UPDATE - 9/27/11

On September 27, 2011, the Receiver filed Receiver's Preliminary
Report with the Court. A copy of the Report is also posted under
the "Reports" tab on the left side of this page.

CLAIMS PROCESS APPROVED

On September 20, 2011, the Court
approved the Receiver's request to begin the claims process as stated in
the Receiver's Motion. To see the Order, click here. If you are an investor,
you can download Claim Form A and
the Claim Form A
Instructions and use them to make your claim. If you are a creditor,
please use Claim Form B and the Claim Form B Instructions.
The instructions are VERY IMPORTANT so please read and
follow them. Please be as detailed as possible in your effort to
complete your Claim Forms and return supporting documentation.

PLEASE MAKE SURE that you sign and date your Claim
Form. YOU MUST RETURN your Claim Form within sixty
(60) days from the date the Claim Form is mailed to you. PLEASE NOTE
the address shown at the top of the Claim Form where completed Claim
Forms are to be returned.

A Claim Form will also be mailed to all known investors and
creditors. If you download the Claim Form from this website and submit
it you do not have to resubmit the form that is received in the
mail.

AGAIN, PLEASE FOLLOW THE INSTRUCTIONS!!!

UPDATE -
9/16/2011

On September 16, 2011, the Receiver filed with the
Court his Motion to Establish Claims Procedure Plan and to Approve Claim
Form. To view the motion, click
here. The motion must be approved by the Court. As soon as it is
approved, the claim forms will be posted on this website along with
instructions that each investor or trade creditor should carefully
follow. The claim forms will be mailed to all persons for whom we have
an address, although that mailing may take some time. Once the claim
forms have been approved and posted, you may just download the forms
from this website. You do not have to wait until you receive a form in
the mail. DO NOT SEND IN CLAIM FORMS UNTIL THE PLAN AND FORMS
HAVE BEEN APPROVED BY THE COURT. Additional notice will be
given when the order is entered approving the plan and claim form.
Official claim forms will be posted at that time.

WHAT TO
EXPECT

The Receiver is engaged at present in a very aggressive
undertaking to marshal all assets of the receivership, preserve and
protect all assets and documents and meet with as many of the closely
related parties as possible to get as complete an understanding of the
assets and businesses affected by the Court's order as possible. This
will take some time. A report on the first impressions and findings of
the Receiver will be published in about 30 days from his
appointment.

The Receiver will soon establish a claims process.
A claim form will be posted on this site and anyone who has a claim
against the defendants in receivership should file a claim as
instructed. All claims will be considered. Supporting documentation
will be required. Claims will be cross checked against the records of
the businesses in receivership. There will be an approval process where
claim amounts with which the Receiver is in agreement will be submitted
to the Court for approval. This does not mean the claim will be paid in
full, it just means that the Receiver and the Court agree with the
amount of the claim. As distributions will be made on a
pro-rata basis and only according to a plan approved by the Court,
distributions to claimants can only occur after all
claims have been reviewed and approved, as well as when there are
sufficient liquid assets to distribute.

The end goal of the
receivership is to collect as much in the form of assets as possible and
to return to the investors as much of the money as possible that they
have invested. This is not a quick process. Updates on events relative
to the process and the findings of the Receiver will be posted on this
site.

Receivership

At the
commencement of the SEC suit, the Court entered an Order Appointing Receiver,
appointing Steven A. Harr to act as Receiver for the Defendants.
Additionally, an Order
freezing the assets of the Defendants was also entered. The Receiver is
currently in the process of investigating this matter. Further details
as to the Receivership proceedings will be set forth in future updates
to the website and interim reports that will be filed by the Receiver
and posted on our website.

The Receiver may be contacted via
email at selectassetreceiver@munsch.
com or by clicking on the "Contact Us"tab onthis page, by
phone at 214-981-7307, or by writing to Steven A. Harr, Receiver, Bank
of America Center, 700 Louisiana, Suite 4600, Houston, TX 77002.